Trump’s Chip Sector Threat Looms Despite Apple Relief

The threat of a 100% tariff imposed by Donald Trump on the global chip sector remains, despite some relief for tech giants like Apple. However, other companies that rely heavily on chip imports may face significant financial strain if the tariffs are implemented.

A recent report suggests that the US government is considering imposing a 100% tariff on all imported semiconductors, including those used in the production of computer chips, smartphones, and other electronic devices. If this happens, it could have devastating effects on companies like Apple, which relies heavily on chip imports from countries like China.

However, while the tariffs may not directly affect Apple’s operations, they could still have a ripple effect on the entire industry. Companies that are unable to secure alternative suppliers or increase production capacity in time may struggle to maintain their supply chains and meet demand for electronic devices.

The European Union and South Korea have already expressed concerns about the potential impact of the tariffs, with EU officials warning that it could disrupt global trade flows and lead to economic losses for companies like Samsung. The US government has not yet announced a final decision on the tariff, but the threat remains a pressing concern for the chip sector.

As the situation continues to unfold, companies in the sector will be keeping a close eye on developments and preparing for potential disruptions to their operations.

Source: https://www.ft.com/content/67449304-780e-4ea2-923d-ee8bfa664f16